How am I Going to Retire?

Statistics suggest we will spend fewer years working than previous generations and that we anticipate longer, more active retirements. However, as retirement approaches you may rightly feel concerned about whether you have saved enough.

One couple in their late 40s - both earners who enjoy their lifestyle - had been clients of mine for years before becoming concerned that they had not saved enough for retirement.

The first thing we did was prepare a detailed retirement analysis using our sophisticated planning software. The results suggested that their dream of early retirement may not be possible unless some changes were made. We made some immediate investment decisions, and will continue to regularly review and update their investment portfolio and retirement plan.

The hardest part of retirement planning - determining what you want your retirement lifestyle to be - is often the most fun. This couple now looks forward to time at the cottage, golfing, and with their grandchildren. Once they knew where they wanted to be, it was a lot easier to plan how to get there.

Consider visiting the BMO Nesbitt Burns website: Solutions for your Needs to view case studies developed to help you understand the kind of retirement solutions BMO Nesbitt Burns can offer.

The six key steps for financial planning success

What can a financial plan do for you? Provide a roadmap to achieve financial goals such as:

  • Saving for retirement

  • Providing for post-secondary education

  • Ensuring your family’s financial security

  • Building wealth

  • Minimizing taxes

  • Leaving an estate for your heirs

Putting Your Financial Plan into Action

You know what your financial goals are and you have outlined a clear route towards achieving those goals. So what's next? Putting your financial plan into action.

Implementing your plan

Proper implementation of your plan is vital if you are to realize your goals. You'll need to make decisions about specific financial products. For example, your plan will outline an asset allocation and diversification strategy so you will need to select the appropriate investments. If your plan has identified that you need additional insurance coverage, you'll need to decide whether Term, Whole Life or Universal Life products are best for your situation. At the same time, you may have conflicting goals, so priorities must be set and trade-offs made.

How I can help

With so many options to consider, it's always worthwhile to get some professional advice. When it comes to selecting financial products you want to make sure that they are the right ones to help you realize your goals. I can review the options for you and recommend those that make sense for your plan. And you may find that you are not able to reach all of your goals at once. Working together, we can sort out your priorities.

Revise your plan when...

Changes to your circumstances -- a career change, retirement, the sale of a business or significant asset, or the receipt of an inheritance, will require that you revisit your financial plan. In addition, life events such as marriage, divorce, arrival of children and the death of a close family member also will affect your plan. And legislative and tax changes can have an impact. Finally, you may change your objectives over the years. At every step along the way, I can help you keep your financial plan current and in keeping with your changing circumstances and goals.

Plan to maximize what you leave to your heirs

Many people don't realize the hidden tax liability in their estate. Here are some of the ways taxes and fees can erode your estate's value:

  • Capital gains tax on the appreciation of your assets.

  • Income tax on the remaining value of your RRSP or RRIF.

  • Probate fees based on the value of your estate.

By developing an estate plan you can minimize their effect and leave more for your heirs.

The role of life insurance

Life insurance can be an important component of your estate plan. When a beneficiary is named, the proceeds from the policy bypass probate fees providing more for your beneficiaries. The death benefit can provide the funds to cover any tax liability. Or it can be used to create a larger estate for your heirs.

To learn more

If you'd like to learn more about some of the strategies presented here or to arrange an appointment, please contact me directly: Marc Filiba (204) 949-2183